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Morning after Council Report: Aug. 29

Post Date:08/30/2017 4:06 p.m.

The Shakopee City Council met in workshop Tuesday, Aug. 29. Among the meeting highlights:

Council discusses proposed 2018 levy and budget

The City Council discussed the proposed 2018 preliminary levy and budget. The City Council is considering a maximum 2.58-percent levy increase in 2018. Thanks to increased tax capacity and new construction, the levy is anticipated to have minimal impact on the average Shakopee homeowner (approximately $20 per household) absent changes in property valuation.

New in 2018, the city is looking to levy $350,000 under the Economic Development Authority (EDA) levy. Previously, the city has levied these funds as part of the general fund levy. However, staff is recommending the council shift the dollars into a separate levy to increase financial transparency.

The budget includes seven new full-time staff positions – a fire assistant chief, two police officers, a code compliance officer, planner and two lifeguards. Other potential budget impacts include:

Anticipated increases in health insurance premiums

Community Center and Ice Arena utilities cost increases

Increases in Park and Recreation Department revenues

Restoration of internal fund charges (second year of two-year restoration)

Overall, the city experienced an 8.5 percent growth in tax capacity for taxes payable 2018 with new construction accounting for approximately a quarter of that growth. The capacity generated by new construction allows the city to increase its levy by 2.58 percent without having a tax impact on existing properties (absent changes in property valuation). Even with the EDA levy, the proposed budget will also decrease the city’s tax rate.

The City Council must certify a preliminary levy by Sept. 30. After that date, it can reduce its proposed levy amount but cannot increase it. More information about the proposed levy and budget is available at www.ShakopeeMN.gov/budget or contact Darin Nelson, Finance Director, 952-233-9326.

The City Council discussed a proposed amendment to the 2030 Comprehensive Plan that would better define entertainment land uses. Currently, the city has two entertainment developments: Canterbury Park and Valleyfair. The proposed definition provides for a mix of uses to represent how entertainment developments have matured over the last 20 years. Entertainment would remain the predominant land use but housing, offices, other entertainment uses, hotels, restaurants and retail would also be allowed. The amendment will be brought back to council for future discussion. More information: Michael Kerski, Director of Planning and Development, 952-233-9346.

Council continues to discuss high-density housing

The City Council discussed residential housing densities throughout the metro region. Staff has proposed creating a new land use category for the 2030 Comprehensive Plan that would allow for higher densities (30 dwelling units per acre; 50 units for senior housing) and provide the city with flexibility as part of its planned unit development process. The council discussed potential higher density locations and the impact of multifamily units on city services. There was no consensus on density or location, and the council requested additional information regarding higher density land use. More information: Michael Kerski, Director of Planning and Development, 952-233-9346.